If you’re looking for small businesses in Kerala, then you’ve come to the right place! We take a look at some of the best options available for new entrepreneurs who want to start their own ventures.
Keralam is a highly innovative, 100 percent literate, and 100 percent digital investment-friendly region. It has lower operational costs than any other competitive location.
Because low rents, electricity, and transport tariffs keep the cost of running an industrial unit located in the state minimum.
Kerala allows for up to 100% direct FDI, subject to certain conditions and procedures. There are no restrictions on small, medium, and large-sized enterprises.
If you’re looking for an affordable place to invest in Kerala, this guide will help you find legitimate opportunities.
The Best Small Scale Business Ideas in Kerala
Automobile Service Station
With increasing car sales, new showroom spaces are being built in Kerala. These showrooms are some of the largest in Asia. There are also growing demands for tire and auto part stores in Kerala.
Luxury car dealerships in Kerala began booming in 2012-2013. Today, the state comprises 13 percent of the nation’s luxury car market.
Thus, opening an auto repair shop is among the most profitable small businesses in Kerala for new entrepreneurs today.
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Ayurveda Tourism
Ayurveda means “the science of life” in Sanskrit. It is one of the oldest forms of medicine known to man. Ayurveda is based upon the belief that health begins with the mind and body being in harmony with each other.
Ayurveda developed thousands of years ago in India and is practiced today throughout Asia, Europe, Africa, South America, North America, and Australia.
Kerala is considered the only true “Ayurvedic paradise” because of its ideal conditions for practicing Ayurveda.
Start an online business from home.
At present, anyone who wants to earn money online from the comforts of their homes can do so. However, some of these methods may be illegal depending on where you live.
- Start a Blog
- Do Small Tasks and Surveys
- Affiliate Marketing
- Freelance Writing
- Dropshipping
Agarbatti Making
Kerala can be a good place to manufacture Agarbatti sticks because of its availability of raw materials nearby. This is one product made in India which is used for both religious and cultural purposes.
Start an SMB in Kerala
Starting a manufacturing business requires fewer initial investments than starting a retail store, but the high-profit margins ensure a fast return on the invested funds.
Several manufacturing business options exist for people who want to set up their own businesses in Kerala.
Open an online grocery store
If you have a shop in a good location, then starting a supermarket in Kerala is easy. However, selecting a suitable location is crucial for its success.
Open an ice cream shop
Fast food restaurants are yet another profitable venture in Kerala. More and more people in the state are now interested in eating fast food.
Boutique Business
Kerala is a state located in South India. It is known for its beautiful beaches, lush green forests, scenic backwaters, and breathtaking temples. A lot of tourists visit the place every year.
Boutique Hotel
As Kerala is a great place to visit, a boutique resort is an ideal profitable enterprise. Essentially, travelers wish to experience the local culture, cuisine, and also some unique touches during their stay.
Starting a boutique resort requires modest capital outlay. And if you do not expand your resorts in the growth, then it is a once-in-a-lifetime venture.
Certified Seed Production
Rice is the most significant grain crop in Kerala. It takes up 7.46 percent of the total land used for cultivation in the state. But, the acreage under rice has dropped alarmingly since the 1980s.
Thus, setting up a certified rice producer’s association is a very profitable venture here to provide paddy seeds to growers.
Generally speaking, rice farming needs better agricultural practices and effective pest, pathogen, and weed control.
Coconut Oil-Based Food Processor
Kerala is one of India’s largest producers of coconuts. In fact, coconuts provide the main source of income – from coir industries to palm oil products.
And you can process plenty of foods from coconuts. So starting a cocoanut-based foods industry is very profitable here.
Fertilizer Distribution
Fertilizer distributors must be licensed by the state government. They require some initial capital investment but not too much.
Hookah Bar Lounge
Because Kerala is a well-known tourist destination in India, hookah bars and lounges are one of the best small business ideas for young people looking to enter the world of entrepreneurship.
Jewelry Making
Gold and diamond are lucrative fields of trade in Kerala. Apart from this, pearls and fashion jewelry are also in high demand in the state. A large number of people are now opting for buying gold jewelry items.
Individuals who wish to start a jewelry shop may do so without any hassle. One can easily get started with a small amount of money.
Microbrewery
Every year, liquor & beer consumption is increasing. In India, Whisky outsells every other drink. So starting a Micro Brewery is a profitable venture for new entrepreneurs.
If you want to open a restaurant, then this is probably one of the best opportunities for new entrepreneurs.
Mobile Facial Spa
Start this mobile facial and spa service by setting up an online store or starting out from your own home.
Photography
Photographers often turn their hobby into a profession by starting a small business. This can be a wonderful way to earn extra income from home.
Recruitment Agency
With so many companies growing in the state, one could start a job recruiting company as an effective way to earn some extra income.
Recruiters often provide various kinds of employment opportunities including permanent jobs, temporary jobs, outsourcing, etc.
Retail Business
Kerala is a great place to start your own retail store. Not only does the area attract large numbers of tourists each year, but it also boasts a large local market.
In addition, the region features plenty of products that can be sold online or through traditional means. So if you’re looking to get into the retail game, consider opening an eCommerce website that offers both utility and high-end goods.
Rice Milling
The key agricultural staple crop in Kerala is Rice. With some 600 varieties growing in Kerala’s vast padi fields, it opens up a profitable opportunity of starting a rice mill in Kerala.
Depending on your desired output level, you should purchase the equipment. You may also seek Government subsidies for setting up a rice mill here.
Security Related Business
With so many people looking for good quality services related to cybercrime and computer crime, there are plenty of lucrative small business options available in Kerala.
Read: Top security business ideas with a small investment
Spice Business
Kerala is known for its rich culture, beautiful beaches, and scenic backwaters. You can find plenty of opportunities to explore these places if you live in the city. However, if you would rather get out of town, you should visit the mountains, rivers, and forests around the area.
These natural attractions offer visitors an escape from the hustle and bustle of modern life. In addition, there are plenty of tourist spots where you can enjoy your vacation.
Tea Bag Making
Kerala is also a popular tourist destination. People come here to enjoy beautiful beaches and lush green forests. You can find many hotels and resorts in Kerala catering to tourists.
If you are planning to visit Kerala, make sure to check out the best places to stay in Kerala.
Tour Guide
One of the best small business ideas for beginners is starting a travel agency. National Geographic Traveller magazine has chosen Kerala as one of the top 13 paradises in the entire world.
And of course, you can get started with a well-established company formation with minimal initial capital.
Travel Agency
With the emergence of the State as the most popular holiday destination for domestic and overseas tourists, the need for high-quality accommodation is increasing.
A full-fledged travel agency with other associated services is one of the best small businesses to start up in Kerala if you want to be successful.
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